India’s foreign exchange reserves fell by $3.06 billion to $696.67 billion for the week ended July 11, according to data released by the Reserve Bank of India (RBI) on Friday.During the previous week as well, the reserves had witnessed a decline of $3.04 billion.
The decline was largely driven by a fall in foreign currency assets, which shrank by $2.48 billion to $588.81 billion. These assets, a major component of the total reserves, are influenced by movements in non-dollar currencies like the euro, pound, and yen held in the reserve basket.
Gold reserves also saw a decline of $498 million, bringing the total to $84.35 billion. Meanwhile, India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) dipped by $66 million to $18.8 billion.The country’s reserve position with the IMF slipped by $24 million to $4.71 billion during the week.Also Read: Travel remittances drive forex outflows as Indians spend more abroad, say expertsIndia’s forex reserves had touched a record high of $704.89 billion in end-September 2024.The RBI typically intervenes in the foreign exchange markets to curb excessive volatility, without targeting a specific rupee level. Its interventions include liquidity management and dollar sales to ensure orderly market conditions.(Edited by : Sheersh Kapoor)
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